Tag Archives: Joint venture

CITY LEAP: ANOTHER ENERGY BUSINESS SHAMBLES?

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A strong rumour rumbles through the Bristolian newswire that never sleeps … One of the three multinational corporates bidding to become a partner in the ‘billion pound City Leap’ neighbourhood heat network joint venture with Bristol City Council has thrown in the towel.

So it’s farewell, then, to ENGIE Services Holding UK Ltd and Sumitomo Corporation (as a consortium). Have they decided that Bristol City Council’s “billion pound’ golden egg may well end up all over their faces? This leaves E ON and Ameresco to battle it out for the grand prize in a procurement race that has so far burned through £7million of council taxpayers cash for no useful reason.

Engie’s decision may not be unrelated to a cabinet paper released this week that reveals the council has just received £11million from the government to build a heat network in Bedminster. This, the paper explains, will connect to eleven new blocks of flats in the Bedminster Green area. In other words, the cost, at present, of connecting one block to a neighbourhood heat network is a million quid.

Never mind any profit, Engie probably figured out not losing a small fortune in this expensive business was probably unavoidable. How much would you have to charge punters to get a million quid back while “implement[ing] competitive heat retail and competitive heat generation across the heat network”?

Not a question Bristol’s cabinet or councillors have so far asked while signing away £7million of our money on their latest daft energy business.